Water Supply Shares Fall Below Launch Price
The share price of the Phnom Penh Water Supply Authority (PPWSA) fell 50 riel yesterday to 6,250 riel, or about $1.52, bringing the authority’s share price lower than its initial public offering (IPO) in April. The decline matches views expressed by investors here that the authority’s IPO was overvalued and that the stock price would likely carry on falling before bottoming out. Four days after the launch of the IPO, the share price grew more than 50 percent to reach an all-time high of 10,300 riel, or about $2.57, as speculative buyers sought to turn a quick profit. But the price has gradually fallen on most days since. Still, investors in the authority say that profits—which reached $8 million last year—are consistent and are likely to continue due to the growing demand for drinking water in the capital. …
